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UnionBank books lower net profit

UNION BANK of the Philippines, Inc. (UnionBank) saw its net income fell by 27.78% last year due to one-time costs related to its acquisition of Citigroup, Inc.’s consumer business in the country.

The Aboitiz-led bank’s net profit stood at P9.205 billion in 2023, lower than the P12.745 seen in 2022, it said in a disclosure to the local bourse on Monday.

Its financial statement was unavailable as of press time.

“Topline revenues posted robust growth driven by a strong consumer business, higher margins, and customer transaction fees. The bank’s bottom line, however, was affected by integration costs related to the Citi consumer business acquisi-tion,” UnionBank said.

“The acquired Citi consumer business has consistently surpassed expectations, while UnionDigital attained profitability throughout its first full year of operations… This is evidenced by a growing individual depositor base, an uptick in new-to-bank credit cards, record-breaking downloads of our mobile app, and net promoter scores that surpass industry standards. Our commitment extends to completing the seamless integration of these new businesses this year. Im-mediately after, you will see a stronger and more profitable UnionBank,” UnionBank President & Chief Executive Officer Edwin R. Bautista said.

The bank’s revenues grew by 36% to P71 billion last year.

Meanwhile, operating expenses rose by 43.19% to P44.89 billion from P31.35 billion due to costs related to its digital arm UnionDigital and its acquisition of Citi’s consumer business in the Philippines.

“These new businesses were only included as part of the banking group in the second half of 2022. At the same time, the bank incurred one-time costs due to the integration of the acquired Citi consumer business,” UnionBank said.

UnionBank’s acquisition of Citi’s Philippine consumer banking business was completed in August 2022.

The transaction, valued at P55 billion, covers Citi’s credit card, unsecured lending, deposit and investment businesses, as well as Citicorp Financial Services and Insurance Brokerage Philippines, Inc., which provides insurance and investment products and services to its retail clients.

Meanwhile, UnionDigital was granted a digital banking license by the Bangko Sentral ng Pilipinas in July 2021. It began operating in July 2022.

UnionBank announced separately on Monday that it is looking to raise P10 billion through a stock rights offering.

The net proceeds will be used to infuse capital into UnionDigital, for retail loans and general corporate purposes.

UnionBank’s net interest income grew by 33.61% year on year to P51.98 billion last year from P38.9 billion in 2022. Interest expense more than doubled to P26.586 billion from P11.623 billion, while interest income rose by 55.49% to P78.562 billion from P50.525 billion.

Its net interest margin stood at 5.5% last year, up from 4.8% in 2022.

“The higher margin is attributable to the remarkable growth in consumer lending. The bank’s consumer loans now account for 58% of total loan portfolio, which is diversified across credit cards, mortgage loans, personal/salary loans, and vehicle loans,” UnionBank said.

Meanwhile, non-interest income grew by 41.38% to P18.802 billion from P13.299 billion.

Fee-based income went up by 54% year on year to P10 billion.

“The growth in fees was a result of the growing customer transactions such as bills payments, funds transfers, interchange, and other card-related fees,” the bank said.

UnionBank’s net loans and other receivables grew by 9.78% to P526.532 billion in 2023 from P479.627 billion in 2022.

On the funding side, deposits inched up to P712.58 billion from P711.304 billion.

Total assets grew by 4.79% to P1.145 trillion from P1.093 trillion.

Total capital likewise went up by 18.47% year on year to P175.587 billion.

“We have surpassed our customer growth targets. Our customer base is now close to 14 million. The strategic shift towards a more predictable, recurring income model has proven successful, reflected in our above-industry net interest margins and fees as a proportion of our balance sheet size. Our overall profitability, however, was affected by front-loaded costs incurred in the integration of new businesses… These investments are necessary to ensure the sustainability of our consumer business growth moving forward,” UnionBank Chief Financial Officer Manuel R. Lozano said.

The bank’s shares rose by 80 centavos or 1.85% to close at P44 apiece on Monday. — AMCS

COL Financial sets 7,100 level as base projection for PSEi in 2024

ONLINE stock brokerage firm COL Financial Group, Inc. has set the 7,100 level as its base projection for the country’s main index in 2024, driven by strong economic growth projections.

COL Financial also expects the stock market to reach levels between 8,200 and 9,400, COL Financial Chief Equity Strategist April Lynn Lee-Tan said during a media briefing on Monday.

However, the Philippine Stock Exchange index (PSEi) could drop to 5,800 and go as low as 4,300 if the market is affected by risks, she noted.

“At a base case scenario, the target is 7,100. Where does that come from? Because we’re forecasting a 10% earnings per share (EPS) growth for this year. So most likely it is 7,100,” Ms. Tan said.

“There is a very positive narrative for Philippine stocks that would seem to imply that a bull market is underway this year,” she added.

According to Ms. Tan, the PSEi could reach as high as the 9,400 level if it reverts back to the ten-year historical price-to-earnings (P/E) ratio of 16.2x. Alternatively, it could go as low as the 4,300 level if it posts a 9x P/E and a 10% annual drop in EPS.

She said some of the drivers for the PSEi’s growth in 2024 include slower inflation and interest rates, increased government spending, affordable and under-owned stocks, and the resilience of the country’s economy.

“Philippine stocks could finally enter a bull market this year as the outlook for economic growth looks bright, and as stocks are cheap and under owned,” Ms. Tan said.

Despite the positive outlook, Ms. Tan said the risks faced by the local bourse include higher inflation and interest rates, an escalation of geopolitical tension, negative surprises to the government budget, and the potential impact of a possible recession in the US economy on Philippine securities.

Ms. Tan said that investors are advised to focus on more “defensive stocks,” which are more resilient to economic downturns and those that provide income through cash dividends.

“It would also be wise for investors to keep some cash so they can capitalize on opportunities to buy stocks at even cheaper prices in case they are sold down indiscriminately because of contagion,” she said.

COL Financial Group Chief Technical Analyst Juanis G. Barredo said the PSEi is now working on its third downtrend line, with resistance at 6,700.

“Both the US and the Philippines have stretch marks and could do with some corrections; PSEi support at 6,400-6,300 then 6,100-6,000. Corrections should be taken as better entry windows for positions with potential upsides later at 7,100 to 7,500,” Mr. Barredo said.

“The risk points include slow or delayed rate cuts, US elections, and geopolitical threats affecting supply issues to countries. But keep your eye on the recovery ball and only use corrections as partial profit taking points and/or buy-back windows,” he added.

On Monday, the PSEi dropped by 55.41 points or 0.82% to close at 6,630.68 while the broader all shares index fell by 20.90 points or 0.59% to end at 3,487.71. — Revin Mikhael D. Ochave

Warning to exiled Putin critics as rockers face deportation

Bi-2

MEMBERS of a self-exiled Russian rock group known for opposing Moscow’s war in Ukraine face possible deportation home after being arrested in Thailand for breaking immigration rules.

Russian Foreign Ministry spokeswoman Maria Zakharova on Saturday accused them of sponsoring terrorism by publicly supporting Ukraine, raising concerns they may face criminal charges in Russia. The Russian consul in Phuket said that they’ll be sent to Bangkok for deportation based on their citizenship.

With four members of the Bi-2 band holding Israeli passports — including one who is also an Australian citizen — the issue has become a diplomatic headache for Thai authorities and will likely alarm Kremlin opponents who fled abroad. Russian artists critical of the government have encountered increasing difficulties in performing overseas, with opponents of President Vladimir Putin alleging a campaign to intimidate and silence them.

Since his invasion of Ukraine, Mr. Putin has waged an unprecedented crackdown on dissent, jailing or driving his critics into exile. An estimated 1 million Russians left the country in 2022 and 2023, including some prominent anti-war cultural figures, in the largest brain drain since the collapse of the Soviet Union.

Five of the seven Bi-2 members who were detained on Jan. 24 on the Thai resort island of Phuket for holding two concerts without a work visa are Russian citizens. Their manager said Sunday they’re already on their way to the Thai capital by bus. The musicians fear they’ve been targeted for their anti-war stance, according to their defense team.

PERFORMERS COMPLAIN
Maxim Galkin, a comedian now based in Israel, said he was barred from entering the Indonesian island of Bali for a planned show on Saturday despite having received a work visa two days before. Mr. Galkin, whose shows in Thailand were recently canceled by owners of the venues, said on Instagram that passport officers in Bali showed him a letter from the Russian government requesting Indonesia keep him out of the country.

Mr. Galkin was fined 100,000 dirhams ($27,225) by the United Arab Emirates over a performance in Dubai in which he proclaimed support for Ukraine, according to the Mash Telegram channel. Russian rap musician Alisher Morgenshtern has said on social media that the Arab country has imposed an entry ban on him.

Moscow has declared the lead singer of Bi-2, Mr. Galkin, and Morgenshtern as “foreign agents.”

The Thai foreign ministry didn’t respond to an e-mailed request for comment. When asked about the case, Israeli Foreign Ministry spokesman Lior Haiat said Israel “is trying to help” its citizens under arrest in Phuket. Australia’s Department of Foreign Affairs and Trade said it’s providing consular assistance to an Australian citizen detained in Thailand.

The challenges faced by Bi-2 are the result of concerted action by Russia and send a worrying signal, according to Dmitry Gudkov, a Kremlin opponent and former lawmaker who has taken refuge in Cyprus.

“The authorities want to frighten everyone living abroad to show that they can go after anyone, anywhere,” he said. — Bloomberg

Philippine peso 49.7% undervalued against us dollar (if based on big mac prices)

The Economist’s Big Mac Index is based on the theory of purchasing power parity (PPP), which states that in the long run, the exchange rates of any two economies should move towards the rate that would equalize the prices of an identical basket of goods. Using this approach for a Big Mac, one can estimate how much one currency is under- or overvalued relative to another. As of January 2024, a Big Mac costs $5.69 in the US compared to P161 in the Philippines, implying an exchange rate of P28.30 versus the dollar. Compared to the actual exchange rate of P56.30, this means that the peso is 49.7% undervalued.

Ovialand, Japanese firm Takara Leben team up for real estate expansion

REAL ESTATE developer Ovialand, Inc. has teamed up with Japanese real estate firm Takara Leben to expand its portfolio and offer more premium affordable homes to Filipino families, its president announced on Monday.

The first project under the partnership will be the 6.5-hectare Savana South development in Laguna, Pammy Olivares-Vital, Ovialand president and chief executive officer, said during a briefing.

The project will have 657 homes that are expected to generate P1.97 billion worth of sales over four years.

Ovialand and Takara Leben will establish a joint venture company to serve as project developer.

In a separate interview, Ms. Vital said that Ovialand and Takara Leben are aiming to develop at least five projects within three years.

“Our joint venture with Takara Leben marks our commitment to continue expanding beyond the core markets we serve and build on the successes we have achieved throughout the years,” Ms. Vital said.

“Takara Leben is an experienced developer with a proven track record across various segments of the real estate industry, and we are pleased to be their partner in the Philippines as they continue expanding their presence in Southeast Asia,” she added.

Under a memorandum of understanding, Ovialand and Takara Leben will open projects across locations determined in accordance with the property developer’s plan to have a nationwide presence by 2030.

Takara Leben Director Hiroshi Iwamoto said the partnership with Ovialand is part of the company’s growth strategy in Southeast Asia.

“Our growth strategy in Southeast Asia involves partnering with housing developers that have differentiated themselves from competitors and are yet to fully realize their potential. Ovialand fulfills this criteria through their rapid turnover of high-quality and affordable homes to clients and their ambitious goals of expanding nationwide,” he said.

Ovialand has developments in Southern Luzon and Bulacan. Some of its developments include Savana, Santevi, and Sannera in Laguna; Caliya in Quezon; and Terrazza de Sto. Tomas in Batangas; as well as Seriya in Bulacan.

Established in August 1989, Takara Leben is a Japanese company involved in the development and sale of condominiums, leasing of real estate, and distribution of real estate. — Revin Mikhael D. Ochave

Westwoods Storeys secures preliminary EDGE certification

PUEBLO DE ORO Development Corp. (PDO) has secured a preliminary EDGE (Excellence in Design for Greater Efficiencies) certification for its Westwoods Storeys project in Cagayan de Oro City.

The property development arm of the ICCP Group is developing the Westwoods Storeys, a low-density, medium-rise condominium development, in barangay Carmen.

The forest-inspired development is offering 989 units in seven buildings, composed of studio and two-bedroom units.

“According to the Philippine Green Building Initiative (PGBI), which awarded the preliminary certification, the resource-efficient design of Westwoods Storeys will result in reductions of 28% in energy, 27% in water, and 32% in materials’ embodied energy compared to a local base case,” the company said.

PGBI’s assessment was based on Birch Tower, the first of seven buildings planned for Westwoods Storeys.

The building’s passive design such as reduced window-to-wall ratio and reflective walls, “result in saving 1,050 kilowatt-hours of energy per year.”

“Water-efficient fixtures and rainwater harvesting contribute to saving an estimated 9,405.70 cubic meters of water per year… Additionally, the construction materials used in the project contribute to saving 697.28 metric tons of carbon dioxide (tCO₂e) per year or equivalent to 136 homes’ electricity for a year,” PDO said.

EDGE is a green building standard and certification developed by International Finance Corp., which is a member of the World Bank Group. The certification helps property developers to build and brand “green” developments in a fast, easy, and affordable manner.

PDO was previously awarded preliminary EDGE certification by PGBI for the Pueblo De Oro Residences Malvar in its Townscapes Malvar township in Batangas.

Coal power and higher life expectancy

AMONG the common arguments against the retention of existing coal power plants in the Philippines and other countries is that coal is polluting and causes more sickness, lowering lifespans.

I intend to verify and quantify how honest or dishonest this statement is. For international data, I got the total coal consumption (in exajoules, EJ) by country, then divided it with their population in a given year, then I computed the coal consumption in gigajoules (GJ) per capita. I divided the countries into three. In Group A are the countries in Europe and North America, in Group B are selected Asia-Pacific countries plus South Africa, and in Group C are East Asian countries. The results:

1. Many countries in Group A had huge coal consumption until 2022. “Greenie” Germany had 43 GJ/capita, the US had 66, and Estonia had 90. In Group C, Indonesia had only 2.6 GJ/capita, Vietnam had 2.5, and Philippines had only 1.6. Yet the Philippines and other Asians are being bullied constantly to retire their coal plants soon — and prepare for blackouts and underdevelopment.

2. Despite repeated mantras of “decarbonization” and “exit from coal,” coal per capita consumption has generally been flat over the past two decades in many countries including greenie Europe and North America.

3. Countries with high coal consumption per capita also have long life expectancies of up to 82 years (Canada, Finland, Belgium). So there is no truth that as countries consume more coal power, their sickness incidence is high and life expectancy is low. It is a dishonest narrative (see Table 1).

The Philippines should expand our coal capacity, which is very small on a per capita level compared to greenie countries in the West. But there is endless bullying to decommission many of our coal plants, and opposing the expansion of existing ones, like the proposed coal expansion in Toledo, Cebu, partly on health grounds.

I computed the coal capacity per capita in some provinces in the Philippines. These are Bataan, Quezon, Batangas, and Pangasinan (see Table 2).

Bataan’s coal capacity per capita is 17 times larger than Cebu’s, Quezon’s is six times larger than Cebu’s. Are the people in Bataan and Quezon more sickly, dying faster, than the people in Cebu, or in provinces with no coal plants like the Cordillera and Cagayan regions, the Bicol region, the Negros provinces? Far out.

The Department of Energy (DoE) and other government agencies, national and local, should ignore the infantile concerns of the anti-coal groups based on dishonest health claims. The DoE should also consider allowing coal plants in greenfield investment while nuclear power development is still being discussed. Help enable the economy to have cheap and stable electricity, and help sustain fast growth.

UPSE RPA-PDEAA LECTURE
The University of the Philippines School of Economics (UPSE) Program in Development Economics Alumni Association (PDEAA) will hold the second annual Ruperto P. Alonzo (RPA) lecture on the topic, “The nuclear option and economic growth” on Feb. 8, Thursday, 3 p.m., at the UPSE in Diliman, Quezon City. It will be open to the public and media.

The main speaker will be DoE Undersecretary Sharon Garin, and the panel discussants will be Irma Exconde (PDE batch 37); Dr. Carlos Arcilla of the Philippine Nuclear Research Institute (PNRI); a physicist, Paolo Pagaduan, of the Asian Peoples’ Movement on Debt and Development; and representatives from Aboitiz Power (AP) and MGen/Meralco. The moderator will be Jay Layug, an UPSE alumnus.

Sponsors of the event are AP, Meralco, and Robinsons Retail Holdings, Inc.

It will be good to hear from the only energy companies in the Philippines which have explicitly declared their intention to develop nuclear energy in their future power portfolio. Robinsons, in the meantime, is one of the biggest power consumers in the country because of their many business units.

 

BIENVENIDO S. OPLAS, JR.is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

BDO raises P63.3B via sustainability bonds

BDO UNIBANK, Inc. (BDO) has raised P63.3 billion from its second offering of Association of Southeast Asian Nations (ASEAN) sustainability bonds.

The issue size was well above the original offer of P5 billion and higher than the P52.7 billion raised from BDO’s first offering of ASEAN sustainability bonds in January 2022, the lender said in a disclosure to the local bourse on Monday.

“The issuance was backed by strong demand from retail and institutional investors, with a rapid buildup in orders resulting in the shortening of the offer period by a week to Jan. 16, 2024,” BDO said.

The 1.5-year notes have a coupon rate of 6.025% per annum.

Proceeds from the issuance will be used to diversify BDO’s funding sources and finance or refinance assets eligible under the bank’s Sustainable Finance Framework.

Standard Chartered Bank was the sole arranger of the transaction. BDO and Standard Chartered Bank were also the selling agents, while BDO Capital & Investment Corp. was the financial adviser.

BDO’s net profit rose by 16.5% year on year to P18.7 billion in the third quarter of 2023 amid higher interest income and lower provisions.

Its shares rose by 0.07% or 10 centavos to close at P144.90 each on Monday. — AMCS

Planters Products, Inc. to hold Special Stockholders’ Meeting on Feb. 22

 

 

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Basic Energy board OK’s partnership with Renova for wind project

BASIC Energy Corp. has approved a partnership with Japanese renewable energy company Renova, Inc. for the joint development of the proposed 50-megawatt Mabini wind power project in Batangas, the company announced on Monday.

“The company appointed its president as its representative authorized to negotiate with Renova and execute the memorandum of understanding (MoU) and all related documents,” the company said in a disclosure.

The Mabini wind power project covers 4,860 hectares in the Mabini Peninsula. It is expected to operate and deliver power to the grid by 2027.

The renewable energy service contract for the project was awarded by the Department of Energy to the company in 2021.

In February last year, Mabini Energy said it had allocated an initial budget of around P31 million for the wind resource assessment campaign, permits and licenses, and ancillary activities.

Renova develops and operates multiple renewable energy power sources, including solar, wind, biomass, geothermal, and hydro power, based on its website.

At the local bourse, shares in the company slightly fell by P0.005 or 2.63% to close at P0.19 apiece. — Sheldeen Joy Talavera

Digital payments may make up 67% of total retail transactions this year

MORE THAN HALF of retail payments in the Philippines will be done digitally this year amid the growing adoption of online solutions, Filipino financial technology (fintech) firm Mochi said.

Mochi, a startup that specializes in invoicing and billing solutions, said in a statement on Monday that they see continued growth in digital payments this year.

“The projections of Philippine-based fintech startup Mochi suggest that 67% of retail payments in the country will be digital this 2024. This figure was derived from the 43% average year-on-year growth rate of digital retail pay-ments from 2019 to 2022 released by the Bangko Sentral ng Pilipinas (BSP) while considering the post-pandemic slowdown of said growth rate,” the company said.

The increased adoption of online payment solutions, the expansion of small and medium enterprises (SMEs), and the recovery in economic activity following the coronavirus pandemic will drive digital payments, Mochi said.

“Digital payments remained strong post-pandemic despite the slowdown,” Mochi Co-Founder and Chief Executive Officer Yroen Guaya Melgar was quoted as saying.

“With more than 90% of businesses in the Philippines being small businesses, it’s no wonder they’ve become champions of the digitization of financial services,” she said.

Based on latest data from the BSP, the share of online payments in the total volume of retail transactions in the country rose to 42.1% in 2022 from 30.3% a year earlier.

The total payment volume stood at 4.85 billion in 2022, with those done via digital platforms totaling 2.04 billion transactions. The top contributors for the increase in volume were merchant payments, person-to-person trans-fers, and salaries and wage payments.

According to central bank officials, the country was on track to meet its goal to have 50% of total retail transactions done digitally at end-2023. The next digital payments report of the BSP will be released in July this year.

However, the rise in online payments may also negatively affect SMEs as digitalization calls for these firms to be vigilant against fraud, miscalculations, and productivity bottlenecks, Mochi said.

“As an accounts receivable platform, Mochi is excited to help more SMEs manage the growing number of digital payments that they are receiving,” Ms. Melgar said.

“With digital invoice creation, integrated payment channels, and automated reminders, SMEs can be assured that the digital payments they are receiving will be more easily managed,” she added.

Under the Philippine Development Plan, the government wants 60-70% of retail payment transactions done online by 2028. — K.B. Ta-asan

Now is the perfect time to change the Constitution

THE INAUGURAL session of the Constitutional Commission of 1986 — OFFICIALGAZETTE.GOV.PH

NOW is the perfect time to change the Constitution. It’s the perfect time because Ferdinand Marcos, Jr. is president.

It’s the perfect time politically.

President “Bongbong” Marcos is not invested in the 1987 Constitution. He’s the perfect person to initiate changes because the 1987 Constitution was born from the ouster of his late father. The stars aligned when he, representing the anti-thesis to the Anti-Marcos Yellow People’s Power revolution, became President and head of government.

He is also the first President to be elected with an overwhelming mandate of 59%. This is a mandate for systemic change.

The coalition that deposed his father and wrote the 1987 Constitution has been defeated politically. This means that the people have rejected the ideology behind the 1987 Constitution.

The informal coalition behind the 1987 People Power revolution included the anti-Marcos oligarchy, the Catholic Church, middle-class professionals and social democratic activists, and the communist Left. While the CPP-NPA (Communist Party of the Philippines – National People’s Army) boycotted the 1983 elections, nonetheless they were still part of the informal coalition. They formed the core of the anti-dictatorship rebel forces, with at least 25,000 NPA fighters pinning down the Marcos military. The Left’s united front organization, the National Democratic Front, was active in the anti-Marcos struggle.

The ideology of this coalition was reflected in the 1987 Constitution, which was written by appointed members to a Constitutional Commission by former President Corazon Aquino. The anti-Marcos oligarchy got Filipino First and Filipino Only provisions in the Constitution, ensuring a lack of competition from foreign investors.

Not only were the Filipino Only provisions from the 1935 and 1973 Constitutions carried over, but these were expanded to mass media and advertising and the practice of professions.

The Filipino First policy provisions in the Constitution also ensured an overarching advantage to the Filipino oligarchy. These protectionist provisions made rent-seeking the economic model of the Philippine economy.

The Catholic Church got a provision effectively prohibiting abortion in Section 12 Article 2 that states, as a matter of principle and national policy, “the State shall equally protect the life of the mother and the life of the unborn from conception.”

The Yellow-Leftist ideas in the Constitution enshrined “statism,” or state intervention, in the provision that “the State shall regulate the acquisition, ownership, use, and disposition of property and its increments.”

A significant portion of the Constitution is about Yellow-Leftist ideas on social justice and asset distribution. While in theory, this was commendable, in practice, since the economy was based on rent-seeking and statism, it merely resulted in the redistribution of poverty.

An example is the landmark 1987 Comprehensive Agrarian Reform Law (CARL), a product of the ideas on social justice in the 1987 Constitution. Instead, as real social justice demands redistributing lands to the farmers for free and giving them economic freedom, CARL saddled agrarian reform beneficiaries with long-term debt, prohibited them from mortgaging and selling their lands, prohibited them from expanding beyond the land retention limit of five hectares, and substituted the landlord with an inefficient and corrupt government. The result has been perverted social justice. Landless peasants became impoverished landlords. Agricultural productivity fell. The Philippine became more food import dependent. Bureaucrats, on the other hand, who had to give permits, from land conversions to food importation, became rich, as well as the criminal syndicates behind them.

Statism together with Protectionism ensured that rent-seeking (and its manifestation, massive corruption) became the dominant economic activity.

The Left, particularly the communist Left, has been a driving force behind Statism and Protectionism. The Left and its allies have been loud opponents of opening the economy. Their anti-imperialist ideology is aligned with that of the Filipino oligarchy and makes the Left strange allies with the oligarchic Right.

Now is also the perfect time to change the Constitution because the Left is nearly dead politically and militarily. CPP Founder, Jose Ma. Sison, died on Dec. 16, 2022, after decades in exile. The CPP conjugal leaders, Benito and Wilma Tiamzon, died on Aug. 22, 2022, when their boat exploded while being chased by military forces. From about 25,000 active fighters in 1987, the NPA has dwindled to about 1,500 armed fighters and zero guerrilla fronts.

The last elections showed a clear political defeat of the Left. The leftist Makabayan bloc, which used to win at least 12 representatives to Congress based on the party-list system, managed to eke out only three representatives. The socialist candidate, Leody de Guzman, got a measly 0.2% of the vote.

The Yellows too suffered a big political defeat. Their candidate Leni Robredo got only 15 million votes, less than half of the 31 million votes of Bongbong Marcos. Only Risa Hontiveros managed to get elected senator. In the coming 2025 senatorial elections, not a single Yellow candidate is among the top 12 based on the latest surveys.

The Catholic Church, which had been influential in politics under the late Cardinal Sin, has retreated from political activities, must contend with sex abuse scandals, and is focused on its schism (between the conservatives and the progressives under Pope Francis).

The decisive political defeat of the Yellows and the coalition behind the 1987 Constitution showed the failure of the 1987 Constitution to meet the aspirations of the Filipino people. The overwhelming mandate given to Marcos and Duterte in 2022 showed that the Filipino people wanted a different direction for the country and an overhaul of the failed economic model and ideology behind the 1987 Constitution.

It’s timely to change the Constitution because President Bongbong Marcos also has overwhelming support from the majority in the Senate and Congress. The timing is also right because the next presidential election is still four years away. Marcos is not yet a lame-duck president.

It would be a political mortal sin if Marcos and Duterte don’t listen to their mandate. Keeping to leftist and oligarchic policies of Protectionism and Statism would not be in keeping with the voice of the people. Politicians risk voters’ anger if they don’t listen to the mandate given to them.

If we don’t change the Constitution now, when the political conditions are ripe, when will we ever get another chance to change it?

 

Calixto “Toti” V. Chikiamco is a BPO entrepreneur, book author, and is president of the Foundation for Economic Freedom.

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